2004 WORLD PV MARKET REPORT HIGHLIGHTS:

World PV Market up 62% in 2004, Silicon Feedstock to Restrict 2005 Market Growth

World solar photovoltaic (PV) market installations were 927 Megawatts in 2004, representing growth of 62% over 2003 installations. Once again, Germany led the pack with a startling 152% growth. Germany has taken over market leadership from Japan in terms of annual installation rate (the latter still remains the leader in cumulative PV installed).

The two largest country markets, Germany and Japan, accounted for 69% of the total world market installations in 2004.

The US market showed 27% growth in 2004 compared to 17% in the previous year. 277 MW of PV was installed in Japan in 2004, an increase of 27%, but a fall from 36% growth in 2003.

However, the star performer among the top three country markets was Germany which secured 366 Megawatts of new installations, following on from a strong 2003, when that country market gained 76%.

Consolidated world production of photovoltaic cells increased to 1146 MW in 2004. Japanese manufacturers contributed 48%, with the US contributing 11%, compared to 26% five years ago. Total production from the Rest of the World more than doubled to 171 MW.

A survey of downstream PV distributors and system integrators (76 companies participating) sets out the present solar photovoltaic commercial and market issues.

The annual report provides a world PV market forecast for 2005-06 and then secondarily 2007-2010. In the first period, a rigorous analysis of the worldwide supply position, shows there is insufficient silicon feedstock* to meet the planned cell manufacturing capacity expansion announcements and overall PV market growth will be restricted as a result.

The worldwide annual PV installation rate will reach 3.2 Gigawatts by 2010, a threefold increase over 2004 market installations. World PV industry annual turnover will grow from $6.5 billion in 2004 to reach $18.5 billion by 2010. By the end of the forecast period (2005-2010), four new PV country markets will emerge to establish a second tier behind the traditional German, Japanese and US leaders.